Filing.Solutions™ - Frequently Asked Questions

Employer Identification Number (EIN) Related Questions

The EIN, or the Employer Identification Number, is an identifying number, which is assigned by the Internal Revenue Service. The EIN is also one of the Federal Tax Identification Numbers and is utilized to help identify an individual business or corporation. Businesses are typically required to obtain one of these figures, while self-employed individuals can do so on their own accord. The sole purpose of the EIN is for tax administration and the number should not be used for other reasons, such as lotteries or tax lien auctions.

Unfortunately, your business will not be able to obtain another EIN online if one has been obtained online previously. Instead, you will need to fax or mail in the SS-4 form.

The majority of businesses will be required to obtain an EIN. Others will feel an obligation to obtain one. Below, you will find a number of reasons for acquiring an EIN.

  • You have hired employees
  • Your business could be classified, as a corporation or partnership
  • You are required to file Employment, Alcohol, Tobacco and Firearms or Excise tax returns
  • You are responsible for withholding taxes on income, besides wages, paid to non-residential aliens
  • You have a Keogh plan
  • You are currently responsible for a non-profit organization or Farmer’s cooperative
  • You are involved with trusts, IRAs, estates or Exempt Organization Business Income Tax Returns
  • You work as a real estate mortgage investment conduit

The majority of organizations and businesses will never need to obtain a new EIN, once they have obtained an original. However, there are some situations which will warrant a change. For instance, if your company’s ownership or structure has been altered, you will need a new EIN. Below, you will discover a list of reasons for making the change, depending on the classification of your business.

Sole Proprietors
  • You are forced to file for bankruptcy
  • You have decided to incorporate your business
  • You have inherited or purchased an existing business and decide to operate it as a sole proprietor
  • You intend to operate the business as a partnership
  • You have decided to incorporate the business
  • An existing partnership has been ended and a new one has begun
  • The partnership has been taken over by a partner and will now be run as a sole proprietorship
  • A new charter has been received from your secretary of state
  • You have decided to transform the business into a sole proprietorship or partnership
  • A statutory merger has resulted in a new corporation
  • As a subsidiary, you can use the parent company’s EIN or you can decide to obtain your own
  • You have been representing an estate and operate a business after the owner has passed
  • A brand new trust has been originated using funds from an estate
Limited Liability Company (LLC)
  • You’ve started a new LLC, which has more than one owner
  • A brand new Limited Liability Company, which has a single owner, has been formed in accordance with state laws
  • A single individual is responsible for many trusts
  • A trust is in the process of being changed into an estate
  • You need to change the type of trust you manage

It should be known that there are two delivery options. Opting for rush delivery will help to ensure that your EIN can be obtained much quicker. Rush delivery can provide you with an EIN in a matter of hours, while the standard delivery may take one or two business days.

The charges will vary depending on the specific delivery option that you select.

You can easily contact us by utilizing our Contact Us page. From there you will be able to send us an email and will find other contact methods.

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Both are the same. There is a small collection of different Tax ID Numbers and the Employer Identification Number happens to be one of them.

The process is incredibly straightforward. Once you have figured out what entity is needed, you will be able to fill out and submit our quick and easy one-page application. After the form has been submitted, our representatives will go to work immediately to get your application processed.

Anyone or any business is capable of taking advantage of this service. If you are a single business owner or a sole proprietor, you can use the service. Any LLC (Limited Liability Company) is eligible. Corporations and S-Corporations can also utilize our service. If you are in a partnership company, trust, or estate you can apply for the service. Even a non-profit organization can take full advantage of our service.

With that being said, you should know that there are some restrictions. For instance, the primary address for the business must be listed in the United States, and the person filing for the EIN numbers must submit a valid social security number, federal tax ID, or individual taxpayer ID number.

Individual Taxpayer Identification Number (ITIN) Related Questions

As a taxpayer you are required by the Internal Revenue Service to obtain an ITIN or Individual Taxpayer ID number. This identification number is required for tax administration purposes and each business or taxpayer will have a unique number which cannot be assigned to anyone else. Anyone who already has or can get a social security number will most likely be able to acquire an ITIN, as well. The Social Security Administration, however, determines the eligibility specifics.

This specific identifying factor is specifically utilized for tax purposes. It is beneficial for the IRS and gives them the ability to better track taxpayers. With this type of policy in place, the Internal Revenue Service has a much less difficult time managing tax returns and it allows them to do so in a more efficient manner. Even taxpayers who have been denied a SSN can utilize an ITIN to file their taxes.

Please note that obtaining an ITIN and being eligible for one does not mean that you are able to legally work in the United States. It also does not make social security benefits or income tax credits available to you.

Some individuals will obtain an ITIN for the benefits, while others will do so out of necessity. There are many foreign nations who are required to file federal tax payments. These individuals will need to obtain an ITIN since they may not be eligible for a SSN. Non-residents may also need to obtain one of these numbers. Referring to the provisions of the tax treaty can help you determine whether or not it is a requirement for you. Other requirements can be found below:

  • Non-residents who must file tax returns
  • US residential aliens who intend to file a federal return
  • The spouses or dependents of US citizens and resident aliens
  • Spouse and dependents of non-resident visa holders
  • Some individuals will need to obtain an ITIN. Those that have been unable to legally obtain an SSN and are required to file annual tax returns will also be required to apply for an ITIN. If you are currently waiting for your SSN application to be approved, you should not file the W-7 form. Wait it out and see whether or not the SSA approves or denies your application before moving forward.

    If you are in need of the application for a social security card you will need to obtain the SS-5 form. It can be downloaded online, or you can obtain it through a local Social Security Administration Office. Please note that aliens cannot obtain an SSN and ITIN at the same time. Additionally, it should be known that the Internal Revenue Service no longer accepts forms which show the following:

    • SSA
    • NRA
    • 205c
    • Blanks

    However, they will process those that show SSN and ITIN.

    Now you should attempt to figure out whether or not you should apply. If you have already been approved for a social security number you will not need an ITIN. If you are in need of an ID for business and tax purposes, you should attempt to obtain an EIN instead. Both the EIN and ITIN utilize 9-digits and are Federal Tax Identification Numbers. This remains true for residents and non-residents alike.

    As a holder of either, you will be able to open a bank account and establish a business. That number is also required for filing and paying income taxes.

    Those that are interested in obtaining an EIN will not need other documents. Individuals who wish to acquire an ITIN will need a few, including a passport or ID. Make sure that this information is submitted along with the tax return form. Some will be better served by seeking out an accountant for this specific purpose. On the ITIN the SSN field should be left blank.

    Operating Agreement Related Questions

    LLCs utilize the operating agreement for structuring business functional and financial decisions, which basically makes it one of the most important and useful documents. The document’s purpose will be to govern the internal operations of the business that are suitable for the business owner. The signed document will act as an official contract, which binds all members to its terms.

    • Protects the limited liability status of a business: This will give the members full protect from personal liability to the LLC. Without the operating agreement, the LLC could potentially appear as a sole proprietorship (partnership), which could jeopardize your personal liability.
    • Verbal agreement clarifications: Oral agreements are great, but they can also lead to misunderstandings of certain terms. You will be much safer with operational conditions being put in writing. In the event of a conflict, everyone involved will be able to refer to this document.
    • Seal your agreement in the eyes of the state: Default rules are set forth by the state for those LLCs that do not have a signed operating agreement. These default rules set forth by the state to govern LLCs, whom do not have this official document, are not very reliable.

    Internal operations functionality outlined in the operating agreement:

    • Members’ ownership percentages
    • Voting responsibilities and rights
    • Duties and powers of all managers and members
    • Profit and loss distributions
    • Holding meetings
    • Rules concerning buyout and buy-sell (procedures involving interest transfer, in the event of a death or whenever members opt to do so)

    The state that the operating agreement was formed in, will determine the requirement. Not all states require LLCs to have an operating agreement. If you need further information concerning these requires, be sure to visit your Secretary of State website.

    The operating agreement should be treated and stored in the same place, as your other business core records. LLCs do not have to file these documents, nor will the state accept them for filing, but they should be kept confidential.

    Power of Attorney Related Questions

    The power of attorney document is utilized, when a person (principal) decides to appoint another person (agent) to act in their behalf. This document is utilized for many purposes and the principal is not forced to have a specific reason for utilizing it.

    Example: If someone has decided to temporary relocate to a foreign country for employment or personal reasons they may need someone to do they banking, while they are away. Elderly individuals will also use the power of attorney document, as a way to secure their assets, while allowing someone they trust to conduct business for them and manage their properties.

    Ordinary Power of Attorney: This document is only valid as long as the principal is capable of making decisions for him or herself, but will become invalid, as soon as the principal is deemed mentally incapacitated or dies.

    Durable Power of Attorney: This document will remain valid in the event that the principal becomes mental incapacitated, but they must be alert and oriented at the time it is made. It will terminate at the time of the principal’s passing. The principal also has the option of revoking the power of attorney at any time, by notifying the agent of their intentions. In this case, the original document should be shredded at the time of revocation.

    As a principal, you have the right to revoke the power of attorney at any time. This action is only allowed if the principal is mentally competent to make their own decisions.